Russian LNG, aluminum, and the shadow fleet: What is the new EU sanctions package targeting?

The 16th package of EU sanctions targeting Russia will not include a general ban on the import of Russian LNG. Instead, LNG supplies to terminals not connected to the EU’s common gas distribution system will be halted. These restrictions will not impact most imports from Russia.

Additionally, the European Commission is proposing a phased ban on importing Russian aluminum. Europeans can purchase Russian metal under a quota system for one year before a full ban takes effect.

The sanctions will also disconnect approximately 15 Russian banks from the SWIFT system, along with measures targeting more than 70 vessels of the shadow oil tanker fleet.

Simultaneously, the EC has initiated duties on several agricultural products and nitrogen fertilizers from Russia and Belarus. These agricultural items comprised 15% of Russian imports to the EU in 2023. However, the measures will not limit Russian exports of these products to third countries. Russia is currently the world’s largest exporter of fertilizers, holding a share around 18%.